EXTRACTED: Daily News Clips 7/28/23

PIPELINE NEWS

• Associated Press: Supreme Court allows construction to resume on the Mountain Valley Pipeline

• Washington Post: Supreme Court clears the way for pipeline construction favored by Manchin

• Institute for Energy Economics and Financial Analysis (IEEFA): Analysis Energy Policy Litigation Mountain Valley Pipeline Pipelines Regulation United States

• Oregon Capital Chronicle: Key vote on expanding gas pipeline in Oregon delayed after public, political pressure

• Star Tribune: Fourth aquifer rupture discovered along Line 3 in northern Minnesota

• Financial Times: Developer of blocked Keystone XL pipeline to spin off oil business

• South Dakota Searchlight: Secret maps and toxic plumes dominate third day of pipeline testimony

• KELO: Dates set for Navigator preemption arguments

• South Dakota Searchlight: Economic projections questioned during South Dakota carbon pipeline hearing

• KMA: New alliance promoting benefits of carbon capture for rural America

• The New American: Iowa State Rep. Cindy Golding: Defending Property Rights against Pipeline Eminent Domain

• WHYY: Sunoco Pipeline ordered to pay $660,000 for environmental violations, DEP says

• Enbridge: MHA Nation Set To Become First Tribal Shipper on the Enbridge System

WASHINGTON UPDATES

• Common Dreams: Green Groups Tell Biden to Stop Approving Fossil Fuel Projects If He Really Wants to Cut Methane

• The Hill: House Sends Two Resolutions Overturning Endangered Species Rules To Biden’s Desk 

• E&E News: The coming Manchin-Biden feud over ‘clean hydrogen’

• Washington Post: ‘Vicious cycle’: Heat waves ramp up U.S. burning of fossil fuels

STATE UPDATES

• Casper Star-Tribune: State aims to boost incentive for CO2 enhanced oil recovery projects

• Cal Matters: Fight reignites against Big Oil’s neighborhood drilling

• Carlsbad Current-Argus: What We Know About Federal Plan To Restrict Oil And Gas Drilling From New Mexico Caves 

EXTRACTION

• Science: SHAKY GROUND: A company called Indigo is paying farmers to trap carbon in their soils. Some researchers say the climate benefits are dubious

• Reuters: Canada plans to finalise emissions cap by mid-2024, minister says

• Globe and Mail: Cenovus CEO Jon McKenzie labels Ottawa’s plan to eliminate oil and gas subsidies ‘political rhetoric’

OPINION

• Chicago Sun Times: Piping up on the dangers of CO2 pipelines and carbon capture

• Wall Street Journal: A Mountain Valley Pipeline Miracle
  

PIPELINE NEWS

Associated Press: Supreme Court allows construction to resume on the Mountain Valley Pipeline
7/27/23

“The Supreme Court on Thursday allowed construction to resume on a contested natural-gas pipeline that is being built through Virginia and West Virginia,” the Associated Press reports. “…The high court’s order came as a three-judge panel of the appeals court was hearing arguments in the case. “All necessary permits have been issued and approved, we passed bipartisan legislation in Congress, the president signed that legislation into law, and now the Supreme Court has spoken: construction on the Mountain Valley Pipeline can finally resume, which is a major win for American energy and American jobs,” West Virginia Republican Sen. Shelley Moore Capito said in a statement. Sen. Joe Manchin, a West Virginia Democrat who was a key vote for last year’s sweeping legislation, said on X, the social media platform formerly known as Twitter, that the Supreme Court’s decision “is the correct one.” Lawyers for the company said they needed quick Supreme Court action to keep plans on track to finish building the 300-mile (500-kilometer) pipeline and put it into service by the winter, when the need for natural gas for heating grows… “The 4th Circuit panel did not immediately rule on Mountain Valley Pipeline’s motion to dismiss challenges to the project over concerns about the pipeline’s impact on endangered species, erosion and stream sedimentation. Opponents said they will continue to try to stop construction on the project and are eager to see how the 4th Circuit rules. “All The Supreme Court did today was weigh in on a preliminary stay. The 4th Circuit still has the meat of the case and they can still grant final relief,” DJ Gerken, executive director of the Southern Environmental Law Center, told AP.  “We still believe it’s unconstitutional,” he said… “Derek Teaney, an attorney for Appalachian Mountain Advocates, told the 4th Circuit that Congress’ action last month requiring that all necessary permits be issued for the pipeline’s construction “crosses the fence between the judicial power and the legislative power.” At the end of the hearing, 4th Circuit Judge James A. Wynn commended attorneys on both sides for the work they’ve done. ”If we grant the motion, this is probably the last time we’re going to see you,” he said. “We don’t know where we’ll go from here.”

Washington Post: Supreme Court clears the way for pipeline construction favored by Manchin
Robert Barnes and Rachel Weiner, 7/27/23

“The Supreme Court on Thursday cleared the way to complete a controversial Mid-Atlantic natural gas pipeline, agreeing that Congress greenlighted the project as part of a behind-the-scenes deal to raise the nation’s debt ceiling,” the Washington Post reports. “The justices lifted a lower court’s halt on the remaining construction of the Mountain Valley Pipeline, which will stretch 300 miles through rugged mountains in West Virginia and Virginia. Environmentalists claim the pipeline threatens lands, water resources and endangered species along the way, and have found some success blocking final approval at the U.S. Court of Appeals for the 4th Circuit in Richmond. The Supreme Court did not detail its reasoning or completely dismiss the challenges. But it indicated “that determination is without prejudice to further consideration in light of subsequent developments,” meaning it might do so in the future. Jamie Williams, President of the Wilderness Society, said in a statement that the group “will continue to argue that Congress’ greenlight of this dangerous pipeline was unconstitutional, and will exhaust every effort to stop it.” “…The lower court scheduled an expedited hearing for Thursday. That hearing was underway when the Supreme Court sided with the builders of the pipeline, backed by the Biden administration. Judge James Wynn, an Obama appointee, interrupted his own question to note that he had gotten word of the order. “I guess everybody knows now that the Supreme Court has vacated the stay in this case,” he said. “But that doesn’t affect the arguments that we’re currently hearing in this case, as I see it.” He added with a laugh that the Supreme Court intervention “was not unexpected.” At the time, he and the other two judges on the panel were forcefully questioning Congress’s ability to cut them out of the process entirely “What happened to the rule of law? That a court can decide if it has jurisdiction — that seems so simple as a democratic principle,” Wynn said. “It’s something I think that is unfortunately being lost in all the hyperbole.” “…He and the other judges asked the pipeline’s defenders if there was any limit on Congress’s power to take jurisdiction away from federal courts. “Mountain Valley Pipeline can violate any environmental protection in existing law, and that’s okay?” Judge Roger L. Gregory asked. “It’s greenlit, and you have no stoplight?” “I would phrase it differently,” responded Donald B. Verrilli Jr., a former Obama administration solicitor general who represents the pipeline company. “Congress has made a decision that those laws don’t apply.” Verrilli said a new “spur” of pipeline would require new permits and not be covered by the deal, as would an environmental claim not related to the permitting process. But any permits required for the original pipeline now must be approved and cannot be reviewed.”

Institute for Energy Economics and Financial Analysis (IEEFA): Analysis Energy Policy Litigation Mountain Valley Pipeline Pipelines Regulation United States
Suzanne Mattei, 7/28/23

“The U.S. Supreme Court lifted stays issued by the Fourth Circuit Court of Appeals that were holding up construction of the Mountain Valley Pipeline. The Supreme Court’s decision on Thursday does not provide its reasons for vacating the stays, but it also did not take action in response to MVP’s request to dismiss the underlying cases that had given rise to the stays,” according to the Institute for Energy Economics and Financial Analysis (IEEFA). “There are growing trends in energy alternatives and economics that weigh against the MVP—neither legislation nor legal action can transform this pipeline into a smart energy project for the future… “Also worth noting, however, is what the Supreme Court did not do. Mountain Valley Pipeline LLC (MVP) had asked the court to treat the application for removal of the stays as a petition to dismiss the underlying cases pending before the Fourth Circuit that had given rise to the stays. The cases involve challenges to federal approvals for the pipeline. The court explicitly declined to take action to dismiss the cases in the Fourth Circuit. The order does, however, state that the court’s lack of action on MVP’s request for dismissal was “without prejudice,” leaving open the option to consider that request further “in light of subsequent developments.” On the same day that the Supreme Court issued its order, the Fourth Circuit held oral arguments on MVP’s motion to dismiss the appeals brought by advocates against the pipeline. These cases include a constitutional challenge to the federal debt relief legislation’s provision mandating pipeline approval and barring appeal. So, all is not over yet.”

Oregon Capital Chronicle: Key vote on expanding gas pipeline in Oregon delayed after public, political pressure
ALEX BAUMHARDT, 7/27/23

“Federal regulators delayed a key vote that would allow more natural gas to flow through Oregon, Idaho, Washington and to California following pressure from environmentalists and Oregon’s two U.S. senators,” the Oregon Capital Chronicle reports. “The Federal Energy Regulatory Commission was scheduled to vote Thursday morning on whether to approve the expansion of the Gas Transmission Northwest Express pipeline, or GTN Xpress, that sends billions of cubic feet of natural gas each day from Canada to customers in the Northwest and California… “But on Wednesday, the day before the five-member commission was to take its final vote, members received letters from two dozen environmental organizations, along with Oregon’s U.S. Sens. Ron Wyden and Jeff Merkley, both Democrats, urging the commission to vote “no” or to delay a vote.  The commission struck the vote from its agenda Thursday morning, but did not provide an explanation, commission spokesperson Mary O’Driscoll told the Chronicle… “The commission is scheduled to meet again Sept. 21, but the vote has not been rescheduled yet, O’Driscoll told the Chronicle… “In their letter to the energy commission Wednesday, Wyden and Merkley wrote that TC Energy had not demonstrated a true need for the expansion from customers, adding that increasing natural gas infrastructure was antithetical to the state’s climate goals. Under Oregon’s Climate Protection Program, greenhouse gas emissions need to decrease 90% by 2050. Natural gas utilities will need to count for at least 26% of that reduction. “GTN Xpress is a significant fossil fuel expansion at a time when Oregon and Washington are moving away from fossil fuels,” the senators wrote. “GTN Xpress is simply incompatible with the laws of the states of Oregon and Washington. At the same time, TC Energy has failed to show that there is adequate need for the GTN Xpress.”

Star Tribune: Fourth aquifer rupture discovered along Line 3 in northern Minnesota
Jennifer Bjorhus, 7/28/23

“Enbridge Energy is working to fix another aquifer rupture caused by construction of the Line 3 replacement oil pipeline across northern Minnesota,” the Star Tribune reports. “The Canadian oil company and the state Department of Natural Resources (DNR) confirmed the breach in Aitkin County on Thursday, after it was first announced by Healing Minnesota Stories and a water activist group tracking Line 3’s environmental impacts called Waadookawaad Amikwag, or Those Who Help Beaver. The new breach is the fourth confirmed along the route of the pipeline, which started operating in the fall of 2021. The project generated fierce opposition in the state from environmental activists and tribes. The rupture happened near Moose Lake in Aitkin County, a wild rice lake in an area of wetlands and peat bogs considered to have outstanding biodiversity. It’s near an unincorporated community called Swatara in Macville Township, according to the DNR. In a statement, the DNR said it’s investigating the construction impacts at Moose Lake and described it as a “remote and hydraulically complex” place. Groundwater at the new break is flowing to the surface at about 10 to 15 gallons per minute, the DNR said. That’s “considerably lower” than the rate at which groundwater initially flowed from the other three breaks, it said… “Enbridge has paid more than $11 million to address environmental damage from building Line 3. Last October it was charged with a misdemeanor in Clearwater County District Court related to the Clearbrook rupture, for taking state waters without a permit… “Jeff Broberg, a geologist for Waadookawaad Amikwag, provided a letter he sent to the DNR. In it he said he thinks the artesian groundwater has been flowing from the Moose Lake rupture since construction in late 2021 and that regulators have failed to adequately protect the state’s groundwater — a public resource — and the broader ecosystems.”

Financial Times: Developer of blocked Keystone XL pipeline to spin off oil business
Myles McCormick, 7/27/23

“The Canadian energy company that tried and failed to build the controversial Keystone XL pipeline is spinning off its oil transportation business to focus on shipping natural gas,” the Financial Times reports. “The decision by Calgary-based TC Energy, announced on Thursday, comes a little more than two years after it was forced to abandon plans to build the $8bn Keystone XL from Canada into the US in the wake of President Joe Biden’s decision to pull a necessary permit.  The company said the planned transaction, which followed a two-year strategic review, would leave a gas-focused business “uniquely positioned to meet growing industry and consumer demand for reliable, lower-carbon energy”. “We have determined that as two separate companies we can better execute on these distinct opportunity sets to unlock shareholder value,” said François Poirier, TC Energy chief executive.  The company, formerly named TransCanada, shot to prominence in the US and Canada over the past decade as the proposed Keystone XL project — which would have carried bitumen from the northern Alberta oil sands to refineries on the US Gulf coast — became the focal point of a political stand-off over fossil fuels… “After the spin-off, TC Energy will be left to operate one of North America’s largest natural gas infrastructure networks, spanning roughly 94,000 kilometres from western Canada to the US north-east and Gulf coast… “Pipeline construction in the US has faced strong environmental opposition in recent years as activists seek to block the buildout of infrastructure that locks in reliance on fossil fuels… “The new oil-focused company to be spun out of TC Energy, which will also be headquartered in Calgary, will operate 4,900km of crude pipeline infrastructure across the US and Canada including the Keystone system, which is separate from the never-built Keystone XL.”

South Dakota Searchlight: Secret maps and toxic plumes dominate third day of pipeline testimony
JOSHUA HAIAR, 7/27/23

“The “sensitive sites” potentially impacted by a carbon capture pipeline will remain confidential, for now. Meanwhile, modeling used to assess the impacts of a leak or rupture came under scrutiny Thursday during the third day of a permit hearing before state regulators at the Casey Tibbs Rodeo Center,” South Dakota Searchlight reports. “Stephen Lee is the executive vice president of engineering and construction for Navigator CO2, the company proposing the Heartland Greenway pipeline… “Lee said the maps should remain confidential because they could be dangerous “in the hands of the wrong individuals” like “terrorists.” Brian Jorde, an attorney representing landowners, failed to convince the three elected members of the Public Utilities Commission to make the map overlay public. “I don’t think this is the time or place to solve that specific issue,” Commissioner Chris Nelson said, adding that there’s too little time to debate the issue during the permit hearing. Jorde was not satisfied. “This is the appropriate time to deal with that,” Jorde said. “This witness hasn’t identified anything that would make this confidential.” “…Knowing where sensitive sites are is an important part of modeling the impacts of a potential rupture, according to John Abraham, a University of St. Thomas professor and expert in thermal fluid sciences. He testified that, compared to alternative modeling methods, the software Navigator CO2 used to model the impacts of potential ruptures or leaks is “less accurate and often underpredicts how far a plume would go.” “The Commission should not rely upon Navigator’s Phast modeling or the data and buffers that such flawed modeling provides,” Abraham said in written testimony. “Furthermore, newer, more accurate methods are available that can provide more accurate concentration calculations.” “…Abraham said unreliable modeling was a reason the Mississippi incident was as severe as it was, saying the model used for that pipeline underestimated the plume. “If you are using a tool that’s been shown not to work, and better tools exist, then it’s either bad science or it’s not science,” Abraham told Moore when asked if the modeling submitted was scientific… “Following that, Edwards asked Abraham if a setback of about 400 feet would be adequate… “It’s my opinion, that would be inadequate,” Abraham said… “Lee later said the company has already run more than 225 models, and the company will begin to incorporate the model Abraham suggested.Federal regulators are reviewing the safety standards for carbon capture pipelines… ”Jorde referenced the federal review and asked Lee, “Wouldn’t it be reasonable to wait for the federal regulators to weigh in on those standards?” Lee said federal regulators are aware of the project and have not reached out with concerns.”

KELO: Dates set for Navigator preemption arguments
Bob Mercer, 7/27/23

“The South Dakota Public Utilities Commission will hear from all sides later next month on Navigator’s request to preempt several counties’ pipeline ordinances,” KELO reports. “The state commission agreed Thursday that the matter will be argued at the state Capitol on August 24 and, if needed, August 25. The decision came on the third day of the state commission’s hearing on whether to grant Navigator a permit to build and operate a carbon-dioxide pipeline in Minnehaha, Lincoln, Turner, Moody and Brookings counties. Navigator wants the commission to override pipeline ordinances passed by Minnehaha and Moody counties. Navigator claims the multi-state pipeline, which would dispose of the CO2 at a site in Illinois, can’t meet those ordinances… “Attorney Brian Jorde of Omaha, who represents landowners opposed to having the pipeline cross their properties, said he still preferred the commission open a separate docket on the question. The commission previously rejected that. “I don’t believe the counties’ interests are served from a truncated timeline,” Jorde said. He called it “a very very significant issue” that he would have to respond to in a “compressed” timeline… “State law requires that the state commission reach a decision within one year after receiving a a permit application. Navigator filed September 27, 2022. Nelson said final arguments would be made September 6 during the state commission’s regular meeting. That leaves just three weeks for Fiegen, Nelson and Hanson to formally reach a decision on whether to allow South Dakota’s first CO2 pipeline.”

South Dakota Searchlight: Economic projections questioned during South Dakota carbon pipeline hearing
JOSHUA HAIAR, 7/27/23

“The economic benefits of a proposed carbon capture pipeline came under scrutiny this week during the second day of a permit hearing before South Dakota state regulators at the Casey Tibbs Rodeo Center,” South Dakota Searchlight reports. “The project would create about 430 jobs in South Dakota during the construction phase, 20 jobs during operation, and $1.3 million in sales and gross receipts taxes during initial construction. That’s according to Jonathon Muller, a private economics and policy consultant. He testified Wednesday about the economic benefits of the project before the state’s three elected public utilities commissioners… “Jared McEntaffer is CEO of Dakota Institute, a nonprofit economic research organization that conducted an economic impact study on the pipeline. His study suggests the ethanol industry could grow, creating demand for up to 15% more corn if the state approves both of the carbon capture pipeline projects proposed to cross South Dakota… “Commissioners and attorneys representing landowners critically examined the validity of the economic projections. Brian Jorde, representing landowners, said the studies did not consider alternative carbon sequestration methods, like buying only sustainably grown corn for the production of ethanol. “I thought about it,” said Muller. “It’s not in the report.” Jorde criticized the Iowa-centric focus of Muller’s study, its reliance on data provided by Navigator or other sources, and Muller’s contract with the pipeline company to conduct the study… “Jorde also attacked Muller’s study for not taking into account the impact on future land values from the loss of business and housing developments, or the money spent by opponents to pay for lawyers or to attend hearings… “Craig Schaunaman farms near Aberdeen and told Searchlight he has new development popping up all around his property. He’s concerned about how a hazardous pipeline would impact the value of the property – potentially steering away would-be developers. “Real estate is all about location, location, location,” Schaunaman told South Dakota Searchlight. “So a study that doesn’t take into play future development and expansions, it’s just like, come on. On our farm, we have a responsibility to ensure the best opportunities for future generations.” Commissioner Gary Hanson said he’s not sold that the markets coveted by the ethanol industry, like California, are interested in the product. He cited the state’s mandate to replace gas-powered vehicle sales with electric vehicles and said he’s skeptical of some of the findings in the economic reports… “Near the end of Muller’s testimony, Commissioner Kristie Fiegen cited questions about the data and asked him, “What can commissioners rely on?”

KMA: New alliance promoting benefits of carbon capture for rural America
Dustin Hoffmann, 7/28/23

“There are great debates happening about the environment and how we should proceed to make things better. That debate has gone on in the way we are managing our soil health, how we handle spraying the products we need to maintain our crop health. Now, there is a great debate over how we reduce the carbon we are producing during the manufacturing process of ethanol,” KMA reports. “Carbon capture has been the debate we have been covering in Iowa as the proposed carbon pipelines have been argued for a few years. Many people want to see proof that this is the best option we have. Others want to know if pipelines crossing the state are going to be a danger to citizens and if eminent domain will be used to seize access to private lands… “A new coalition of groups has come together to talk about the benefits of the carbon capture idea for rural America. The American Carbon Alliance is led by CEO and Executive Chairman Tom Buis, former CEO of Growth Energy & President of the National Farmers Union. He told KMA the goal is to talk about what the benefits of carbon capture are to rural America… “Buis told KMA that they understand there is concern over the safety of pipelines and land rights. He counters that there are pipelines all over the country already and we can look to their safety records. You can learn more about the coalition and its message at https://americancarbonalliance.org” 

The New American: Iowa State Rep. Cindy Golding: Defending Property Rights against Pipeline Eminent Domain
Rebecca Terrell, 7/26/23

“Iowa state representative Cindy Golding served as the master of ceremonies for the July rally in Fort Dodge, Iowa: “The Midwestern Coalition to Protect Private Property Rights and Expose the Hazardous CO2 Pipeline & Corruption,” The New American reports. “Golding is a landowner, herself, and is standing up for her own rights as she defends those of her constituents. They are fighting eminent domain threats from for-profit companies who want to install dangerous CO2 pipelines across the state.”

WHYY: Sunoco Pipeline ordered to pay $660,000 for environmental violations, DEP says
Zoë Read, 7/27/23

“Sunoco Pipeline will pay $660,000 for environmental violations that occurred between 2018 and 2021, according to Pennsylvania’s Department of Environmental Protection,” WHYY reports. “The penalties stem from water contamination across the state caused by the company’s Mariner East pipeline construction project. The pipeline carries volatile natural gas liquids from Ohio and western Pennsylvania to Delaware County. The project has been met with pushback from residents, and has faced multiple legal challenges. Last year, Energy Transfer, the parent company of Sunoco, was held criminally responsible for dozens of charges related to Mariner East and the 2018 explosion of the Revolution pipeline near Pittsburgh. Energy Transfer pleaded no contest to the charges, which covered damage to drinking water, wetlands, and waterways across the state during five years of construction. At the time, the project had received more than 120 violations. DEP documents did not specify how many violations were covered by the $660,000 consent agreement… “DEP said Sunoco will pay two separate civil penalties for numerous violations of the Clean Streams Law and the Dam Safety and Encroachments Act. One penalty will resolve civil penalty liability for various violations across the state, including discharging grout and drilling fluids into waterways, which impacted private wells, and constructing an impoundment and swales without a permit. Another penalty will resolve violations for releasing sediment into wetlands, Valley Creek, and Ship Road Run in West Whiteland Township, Chester County. That area is also where sinkholes have appeared as work on the line occurred there. Sunoco also placed concrete into wetlands and waterways, failed to obtain specific permits, and didn’t take the appropriate measures to prevent pollution, DEP said. Pipeline opponent Ginny Kerslake of Chester County told WHYY she believes the fines are insignificant. Since construction began, Energy Transfer has paid over $20 million in fines and assessments. “This is just another example of pay to pollute on this project,” she told WHYY.

Enbridge: MHA Nation Set To Become First Tribal Shipper on the Enbridge System
7/27/23

“…The MHA Nation, also known as the Three Affiliated Tribes, also operates an energy division that includes oil production and processing. Today, we laid the groundwork for a business partnership with the MHA Nation that will enhance economic opportunity on the Fort Berthold Reservation,” according to Enbridge. “Enbridge and the MHA Nation have announced that Thunder Butte Petroleum Services Inc., a wholly owned MHA Nation subsidiary, will purchase the Plaza/Wabek Pipeline from Enbridge for $5 million. The agreement will begin the process of connecting the nation’s operations with the Enbridge network-opening the door for MHA Nation to become the first Tribal shipper on the Enbridge system. “It’s another major step and positive investment that will further support development of our energy trust assets for the MHA Nation and its membership,” says Mark N. Fox, Chairman of the MHA Nation. “This will also be a significant catalyst for enhancing economic development in our region of influence.” “…The Enbridge purchase is a positive step to providing Thunder Butte Petroleum Services an asset that will lead to economic self-sufficiency, and a future revenue source for the MHA Nation,” says Bernie Fox, CEO of Thunder Butte Petroleum. “We also look forward to a positive relationship with our new partner Enbridge.” “…Enbridge is committed to early engagement and meaningful dialogue with Indigenous peoples along our pipeline rights-of-way, based on respect, trust and appreciation for their deep connection to the natural world. As part of our Indigenous Reconciliation Action Plan (IRAP), we’re also actively involved in creating and stimulating Tribal economic inclusion and partnerships in the regions where we do business.”

WASHINGTON UPDATES

Common Dreams: Green Groups Tell Biden to Stop Approving Fossil Fuel Projects If He Really Wants to Cut Methane
JESSICA CORBETT, 7/26/23

“As the Biden administration on Wednesday convened the first-ever White House Methane Summit, advocacy groups stressed that actually combating the potent pollutant’s significant contribution to the global climate emergency requires ditching fossil fuels,” Common Dreams reports. “Methane—the main component of “natural” gas—is over 80 times more potent than carbon dioxide during its first two decades in the atmosphere and is responsible for nearly a third of global warming since the Industrial Revolution. Months after taking office, U.S. President Joe Biden and the European Union launched an international pledge to cut methane emissions by at least 30% by 2030. In line with that pledge—and the president’s broader goal to at least halve all U.S. planet-heating emissions by the end of this decade, relative to 2005 levels—the Biden administration on Wednesday announced the creation of a new Cabinet-level Methane Task Force. The summit also focused on efforts to mitigate and detect emissions, including from super-emitting events… “While some campaigners and experts praised or even participated in the White House’s summit, green groups also emphasized that the administration is not doing nearly enough to tackle methane problems, and is contributing to it by supporting fossil fuel pipelines, liquefied natural gas (LNG) exports, and new leasing public lands—which Biden, as a candidate, had pledged to end. “The importance of President Biden making it a major priority of his administration to cut oil and gas methane pollution cannot be understated,” said Earthworks policy director Lauren Pagel… “However, it must move forward with more accountability for industry and the inclusion of environmental justice communities as stakeholders,” she continued. “More broadly, missing in the president’s announcement is acknowledgment of what climate science clearly shows. There is no climate fix without stopping fossil fuel expansion. While reducing methane will buy the world more time to address the climate crisis, only a rapid transition to renewable energy will stave off the worst effects of climate disaster.” Pagel concluded that “the administration’s commitment to methane reduction is important. But in order to live up to President Biden’s climate and justice goals, he must declare a climate emergency and stop the buildout of fossil fuel infrastructure.”

The Hill: House Sends Two Resolutions Overturning Endangered Species Rules To Biden’s Desk 
Zack Burdyk, 7/27/23

“The House voted Thursday to overturn two Biden administration Endangered Species Act (ESA) rules, sending the resolution to the president, who has vowed to veto them,” The Hill reports.”The two rules apply to federal protections for the lesser prairie chicken and the northern long-eared bat, respectively. The Senate voted in favor of both resolutions in May by a 51-49 margin in both cases. The prairie chicken resolution passed 221-206 with four Democrats voting in favor — Reps. Yadira Caraveo (Colo.), Henry Cuellar (Texas), Sharice Davids (Kan.) and Gabe Vasquez (N.M.) — and a single Republican, Rep. Brian Fitzpatrick (Pa.), voting against. The bat resolution, meanwhile, passed 220-208, with Cuellar and Rep. Jared Golden (D-Maine) joining all Republicans but Fitzpatrick. In floor remarks, Rep. Don Beyer (D-Va.) blasted the GOP majority as prioritizing rolling back environmental protections over economic issues. “My colleagues on the other side of the aisle spent two years shouting about things like inflation and public safety, but now, in power, they’re heading into a six-week recess focused on stripping protections from bats and prairie chickens,” Beyer told the Hill.”

E&E News: The coming Manchin-Biden feud over ‘clean hydrogen’
Nico Portuondo, 7/28/23

“West Virginia Democratic Sen. Joe Manchin is gearing up for yet another fight with the Biden administration, this time over how to implement a tax subsidy for “clean hydrogen,” a key part of the Inflation Reduction Act,” E&E News reports. There’s a big difference this time around: He has allies on his left. Unlike his feud with President Joe Biden over electric vehicle tax credits, the Energy and Natural Resources chair has the backing of leading Senate Democrats who want to see a nascent energy industry succeed and not be hamstrung by regulation… “It all comes down to a still-unresolved question: What exactly is clean hydrogen? The answer, expected soon from the administration, will be worth hundreds of millions of dollars for the industry. And hydrogen backers, including the U.S. Chamber of Commerce, are not being shy about their preferences, unleashing an ad- and letter-writing blitz to sway decisionmakers… “The “clean hydrogen” credit requires certain emission targets be met for companies to qualify. It is up to the Treasury Department to decide exactly how projects will make the cut. Treasury is scheduled to release its 45V credit guidance for companies in mid-August, though it could be later than that. Already, battle lines are being drawn. Ever since the IRA was signed into law, environmental activists have argued that ramping up the “green” hydrogen industry could actually end up severely increasing emissions… “The process is energy-intensive, and environmentalists worry fossil fuel generation on the grid filling that demand will cancel out the climate benefits of the zero-emission fuel. Such green advocates have pushed Treasury for strict guidelines. For instance, a coalition of 18 environmental groups are pressuring Treasury to require hydrogen producers to use only new renewable generation for their electricity, among other asks. But those guidelines would likely make it much harder, and expensive, for hydrogen operators to meet the credit’s emission threshold. If Treasury decides to listen to environmentalists, Manchin will be furious. “That was never in the bill, never talked about,” Manchin told E&E News. “I guarantee there’ll be a lot of problems if they go down that path. A lot of problems.”

Washington Post: ‘Vicious cycle’: Heat waves ramp up U.S. burning of fossil fuels
Timothy Puko, 7/28/23

“America’s historic heat wave is producing a big winner: fossil fuels,” the Washington Post reports. “As temperatures have soared, so has natural-gas consumption, burned for the electricity needed to run air conditioners across much of the Northern Hemisphere. The United States this week has twice broken its summertime record for daily gas consumption, and it could break it again Friday, according to estimates from S&P Global Commodity Insights. The trends illustrate how extreme heat is complicating efforts by the United States and other countries to phase down use of fossil fuels, despite how these fuels contribute to climate change and more intense heat waves. While the build-out of renewable energy is increasing, the world’s power grids are so reliant on gas and coal that burning more of them — and thus producing more planet-warming emissions — is often the only way to cool buildings and protect people from often life-threatening conditions. “The projection for how much energy you need is higher and higher because the cooling needs to go up,” Jason Bordoff, founding director of the Center on Global Energy Policy at Columbia University, told the Post. “There are these tragic ironies all over the climate space.” The problem is global and set to intensify. The International Energy Agency last week said that only a tenth of the 2.8 billion people who live in the hottest parts of the world already have air conditioning, foreshadowing what is likely to become “a vicious cycle.” Use of air conditioning is expected to increase in the years to come, further driving fast-rising energy demand and greenhouse gas emissions in the developing world, the Paris-based watchdog said.”

STATE UPDATES

Casper Star-Tribune: State aims to boost incentive for CO2 enhanced oil recovery projects
Maya Shimizu Harris, 7/26/23

“Wyoming aims to be a national leader when it comes to carbon capture technology. That involves not only investing in the technology itself, but also supporting projects that store or use the carbon once it’s been taken out of the air,” the Casper Star-Tribune reports. “The state is trying to figure out how to incentivize projects that would bring the most benefit for Wyoming. Last week, the Joint Minerals, Business and Economic Development Committee requested a draft bill that aims to help level the playing field for different CO2 storage and use projects and bring in more revenue for the state. Once CO2 has been taken out of the air, it can be stored by injecting it underground where, over time, it will mineralize and turn back into rock. The captured CO2 can also be used as a commodity. For example, it can be injected into oil fields to push oil toward wells in a technique called “enhanced oil recovery.” The federal government incentivizes both new CO2 storage and enhanced oil recovery projects through a tax credit program. But that program tends to support permanent CO2 storage more than it supports CO2 enhanced oil recovery. For the capture provider, that difference in incentives comes out to about $10 per ton of CO2, taking into account the costs of permanent storage versus the costs of enhanced oil recovery. Wyoming would “see benefits from both options,” Lon Whitman, director of the Enhanced Oil Recovery Institute at the University of Wyoming, told the Joint Minerals Committee last week. But, he added, Wyoming would “receive far greater revenue” through enhanced oil recovery projects. In other words, it would be in the state’s interest to close that incentive gap and ensure that CO2 enhanced oil recover projects are on a level playing field with permanent storage projects. Whitman, joined by UW School of Energy Resources Professor Tim Considine and Petroleum Association of Wyoming President Pete Obermueller, proposed closing that gap by using some of the tax revenue coming out of CO2 enhanced oil recovery projects that claim the federal tax credit. The roughly 3% cut from severance taxes, they said, could cover the difference in incentives. Considine explained that the proposed support for CO2 enhanced oil recovery projects could be a “win-win solution” for Wyoming. He estimated that the four potential CO2 enhanced oil recovery projects in Wyoming that he evaluated would involve a total investment of roughly $1.5 billion and produce about 200 million barrels of oil in a 37-year lifespan. That oil would generate new tax income that would net about $800 million after the 3% is taken out.”

Cal Matters: Fight reignites against Big Oil’s neighborhood drilling
Lynn La, 7/27/23

“Recent California elections have imparted a valuable lesson to industries unable get their way with the Legislature: Stop a new law from taking effect by forcing it onto the ballot, and then convincing voters to reject it,” Cal Matters reports. “Defenders of those laws have learned a lesson, too: The best defense is a good offense. So public health groups, environmentalists and community organizations just announced they’ve created a coalition to combat oil industry efforts to block a new law that would ban new oil and gas wells near homes and schools… “Newsom has very publicly taken on oil companies before, such as when he called for a special legislative session to look into what he labeled “price gouging.” The result: a watered-down law authorizing a state commission to investigate and potentially cap oil industry profits — though that did not stop the governor from declaring “we can actually beat Big Oil.” But he has remained relatively mum on oil’s current efforts to overturn the drilling setback law (his office did not respond to a request to comment). He also has been unwilling to use his authority to otherwise restrict drilling — much to the chagrin of environmentalists. He could have, for example, issued an emergency rule or a moratorium on approving new drilling permits before the 2024 election.  Until then, however, oil companies are gearing up for a pricey campaign to convince voters to allow them to drill within 3,200 feet of their homes.”

Carlsbad Current-Argus: What We Know About Federal Plan To Restrict Oil And Gas Drilling From New Mexico Caves 
7/26/23

“Federal land managers planned to block oil and gas development from about 28,000 acres in Lincoln National Forest, aiming to protect ‘sensitive’ cave systems near Carlsbad Caverns and Guadalupe Mountains national parks,” the Carlsbad Current-Argus reports. “The U.S. Forest Service will accept public comments for 30 days on an environmental analysis it conducted on the proposal, and the Department of Interior will make a final decision following that process. Should the proposal be denied by the DOI, its Bureau of Land Management would be allowed to consider proposals for exploration and extraction projects in the area. Here’s what we know about the agency’s plans to withdrawal the lands from mineral development.”

EXTRACTION

Science: SHAKY GROUND: A company called Indigo is paying farmers to trap carbon in their soils. Some researchers say the climate benefits are dubious
GABRIEL POPKIN, 7/27/23

“Lance Unger has been doing things a little differently lately on his farm near the Wabash River in southwestern Indiana. After last fall’s harvest, rather than leaving his fields fallow, he sowed some of them with cover crops of oats and sorghum that grew until the winter cold killed them off. And before planting corn and soybeans this spring, Unger drove a machine to shove aside yellowing stalks—last season’s “trash,” as he calls it—rather than tilling the soil and plowing the stalks under,” Science reports. “For these efforts, a Boston-based company called Indigo paid Unger $26,232 in late 2021 and an even larger chunk late last year. That’s how much an emerging market values the hundreds of tons of carbon that, in theory at least, Unger yanked out of the atmosphere with his cover crops or left in the soil by not tilling… “Indigo also made money in the deal. It took a 25% cut of the bundle of credits it then sold at about $40 per ton of captured carbon. Buyers were companies such as IBM, JPMorgan Chase, and Shopify, which were looking to offset greenhouse gas emissions from their operations and bolster their green bona fides… “But as the industry heats up, so does the skepticism. Some researchers say the science of how soils store and release carbon is too uncertain to support an industry claiming to be cooling the planet. They accuse companies like Indigo of exaggerating the benefits of their programs. “I think the eagerness has sort of distorted the vision of what is really possible,” Ernie Marx, a soil scientist who retired from Colorado State University (CSU) in 2021 and worked for more than a decade on the computer model Indigo and other companies use to calculate the credits, told Science. Emily Oldfield, a soil scientist with the Environmental Defense Fund who has examined soil-based carbon markets, also has her doubts. “It’s really hard to evaluate the actual greenhouse gas benefit of these programs.”

Reuters: Canada plans to finalise emissions cap by mid-2024, minister says
7/27/23

“Canada will likely publish the final regulations of a plan to cap and cut greenhouse gases from the oil and gas sector by mid-2024, its environment minister told Reuters on Thursday. The Canadian government will table draft regulations on the plan by October and expects to publish the final regulations by mid-2024 after consultations with provinces, indigenous groups, civil society and industry, federal Environment Minister Steven Guilbeault told Reuters… “The government’s framework for eliminating inefficient fossil fuel subsidies released on Monday was expected to abolish C$1 billion ($759.82 million) in annual federal support for local oil, gas and coal production, Guilbeault said… “Climate policy analysts said the framework was an important step forward, but fell short by continuing to allow government support for oil and gas projects that plan to reduce emissions through technologies such as carbon capture and storage (CCS). Guilbeault said he estimated the tax credit for CCS projects in Canada to represent about C$15 billion worth of investments. “We’re not counting on CCS to solve all of our climate change problems. It will account for maybe 5% of our overall plan. It could be less than that by 2030,” he told Reuters. Canada will be introducing a regulation to ensure that its electricity grid is carbon neutral by 2035, Guilbeault told Reuters, a move he said would require support from CCS. He also expects CCS to contribute towards decarbonising “hard-to-abate” sectors such as aluminium and cement. “We can anticipate that there will still be some gas on the grid in 2035 in Canada, but that gas would have to be abated. So some CCS probably in the electricity sector,” he said. “You’ll see that CCS has a role to play in ensuring that we achieve our 2030 targets, but it’s not a magic bullet,” he told Reuters.

Globe and Mail: Cenovus CEO Jon McKenzie labels Ottawa’s plan to eliminate oil and gas subsidies ‘political rhetoric’
EMMA GRANEY, 7/27/23

“The chief executive of Cenovus Energy Inc. says the federal government’s plans to eliminate future fossil fuel subsidies are little more than political rhetoric,” the Globe and Mail reports. “Environment Minister Steven Guilbeault on Monday released conditions under which it will allow subsidies to the oil and gas industry. He couldn’t say how much financing would be affected, but officials said government programs that could be affected by the guidelines control about $1-billion in public money. Cenovus CEO Jon McKenzie told an investor call Thursday when asked about Ottawa’s plans that he’s not aware of any subsidies that are direct and unique to the sector. “I’ve been in this industry for a lot of years, and many of those years have been spent in finance. And I certainly remember writing a lot of cheques to the provincial and federal governments, but I don’t remember receiving a lot of cheques in return,” Mr. McKenzie said… “We certainly hear political rhetoric with regard to oil and gas subsidies, we’re just really not sure what it means because, again, we’re not really aware of any oil and gas subsidies for the industry.” Green groups counter that the sector can access cash that flows through Crown corporations such as Export Development Canada. Environmental Defence, for example, says that about $19-billion in financing for fossil fuels flowed through EDC in 2022, compared with about $2-billion that came from other sources. The federal government is developing the final regulations of a plan to cap greenhouse-gas emissions from the oil and gas sector, which it says will likely be published by mid-2024.”

OPINION

Chicago Sun Times: Piping up on the dangers of CO2 pipelines and carbon capture
Jim Walsh, policy director, Food & Water Watch, 7/27/23

“The Sun-Times’ Editorial Board’s warning that “Transporting carbon dioxide to Illinois must be done safely” cannot come soon enough,” Jim Walsh writes for the Chicago Sun Times. “Corporations like Navigator CO2 stand to make billions of dollars off these dangerous pipelines, thanks to generous tax credits in last year’s Inflation Reduction Act. Wasting no time, a trio of pipeline profiteers are rushing to ram thousands of miles of CO2 pipelines from Illinois to North Dakota before adequate rules to guarantee safety can be finalized. It’s far too dangerous to build this cart as we ride it. A single incident could unzip a CO2 pipeline for miles, leaving mass asphyxiation and trapped emergency vehicles in its wake. If industry has its way, networks like those proposed for the Midwest will be only the beginning, and millions of people will be put at risk. What’s more, we are being asked to sacrifice safety for a scam. The carbon capture technology these projects rely on to qualify for federal climate-friendly credits is proven to fail. A Food & Water Watch study shows that no carbon capture projects have come close to performing as advertised. Building hundreds of miles of dangerous pipelines to bolster a failed technology is a terrible idea. And that’s why opposition is growing; more than 150 groups sent a letter to President Joe Biden this spring, demanding that he issue an executive order pausing all permitting for CO2 pipelines and related infrastructure until robust safety regulations are finalized. We should not risk public safety for a corporate tax scam masquerading as climate action.”

Wall Street Journal: A Mountain Valley Pipeline Miracle
Editorial Board, 7/27/23

“The Mountain Valley Pipeline’s legal saga may be coming to a close at long last after the Supreme Court on Thursday vacated a Fourth Circuit Court of Appeals order halting construction. This is a welcome rebuke to willful lower-court judges and a bow to Congress’s clear statement in law,” the Wall Street Journal Editorial Board writes. “…The same three Fourth Circuit judges— Stephanie Thacker, James Wynn and Roger Gregory —have repeatedly struck down permits. Enter Congress, which inserted a provision in the debt-ceiling legislation in June requiring the U.S. Army Corps of Engineers to issue all necessary permits and exempting government approvals from judicial review. The law also vested the D.C. Circuit Court of Appeals with exclusive jurisdiction to hear constitutional challenges to the law… “Nonetheless, environmental groups challenged the pipeline’s federal permits, as they always do, arguing that the debt-ceiling measure is unconstitutional because it allegedly mandates “legal victory” for the pipeline—never mind that Congress can restrict the jurisdiction of lower courts. The three Fourth Circuit judges again ordered a halt to construction… “The High Court’s order on Thursday effectively removes the final legal barriers to the pipeline’s completion. But note to Congress: It shouldn’t take nine years to build a pipeline. Reforming the 1970 National Environmental Policy Act is needed to avoid similar fiascoes.”